XYZ Company bought a new machine that cost $1,000,000 on 1/1/20. The machine had a useful life of 10 years. XYZ Company used straight-line depreciation with an estimated salvage value of $0. XYZ Company is subject to an income tax rate of 40%. XYZ Company sold the machine on 1/1/23 (after using the machine for exactly 3 full years.) In the next 3 questions, you are to determine the Net Cash Inflow (NCF) from the sale of the machine on 1/1/23.

1. If the machine was sold on 1/1/23 for $740,000, the Net Cash Inflow (NCF) is:

A. $714,000

B. $724,000

C. $734,000

D. $744,000

2. If the machine was sold on 1/1/23 for $680,000, the Net Cash Inflow (NCF) is:

A. $688,000

B. $678,000

C. $698,000

D. $668,000

3. If the machine was sold on 1/1/23 for $700,000, the Net Cash Inflow (NCF) is:

A. $400,000

B. $500,000

C. $600,000

D. $700,000